During the late 19th century there was a veritable stampede of people as tens of thousands hurried to the Yukon in the wake of the gold rush that swept the territory. Today, a similar rush is being experienced in Canada; however, today people are looking not for gold but diamonds.
The rush began in 1991 in the Northwest Territories and is still going strong. In fact, today Canada ranks as one of the leading producers of diamonds in the world.The basis for the huge interest in diamond mining in Canada lies in the discovery of rare rock formations which are somewhat carrot shaped. While they may look somewhat strange, these formations occasionally contain diamonds. Known as kimberlite pipes, they are increasingly becoming highly sought after in the frozen north. The first discovery of a kimberlite occurred in Saskatchewan near Sturgeon Lake back in 1988. That discovery sparked a rush and rash of diamond mine development within the next few years.
Since that time a number of diamond mines have been established in Canada. The Ekati is situated somewhat east of Yellowknife and was opened in 1998. The second mine was established southeast of Ekati and opened in 2003. A third diamond mine, known as Jericho, was established in the summer of 2006. In late 2007, De Beers opened a diamond mine.
According to statistics, in the period between 1998 and 2002 alone, more than 13 million carats of diamonds have been produced from the mines in Canada. Considering the fact that kimberlite pipes are not always that easy to find, the number of diamonds coming out of Canada is nothing short of extraordinary. Typically, kimberlite pipes are found in clusters ranging anywhere from six to forty. Each cluster can involve an area spanning some 40 kilometers in diameter. Due to the fact that a magnetic signature is often emitted by the ‘pipes’, a magnetic survey is frequently used, either on the ground or in the air, to locate these rich pipes.
Not only is the number of carats which have been mined staggering but also the value as well. Estimates place the value of those diamonds at nearly $3 billion. As if the value and number of diamonds coming out of Canada were not enough to place Canada squarely on the map for diamond production but Canadian diamonds have also developed a global reputation for their quality as well.
Today Canada supplies approximately 15% of the world’s supply of diamonds. The other two top producers of diamonds are Russia and Botswana. According to reports coming from the diamond mines in Canada, the supply is not anticipated to run out any time soon. The diamond mines currently in production in Canada are anticipated to continue providing valuable, quality diamonds for at least two more decades. It is anticipated that in the next few years, even more diamond mines will begin production.
Nunavut appears to have become the center of diamond speculation as more and more people become interested in the mining in that area. The Diavik mine, located barely 130 miles from the Arctic Circle, is considered to be the premier diamond mine in Canada. The 650 foot deep crater which reaches deep into the frozen tundra is certainly not where you would expect to find a diamond mine, let alone one with such a valuable and rich production. Yet, that is exactly what Diavik is. The diamond mine is known for producing some of the purest deposits of diamonds in the entire world.
As a joint operation between Harry Winston Diamond and Rio Tinto, the Diavik mine produced nearly 12 million carats in 2007 alone. That level of production is approximately 1/10th of the entire world’s production of diamonds. Significant work has been conducted in the mine to ensure that it will continue to produce diamonds for the next several years. For example, power is generated right on-site and supplies are brought in over an ice road that is open for only a few weeks out of the entire year. Many feel that the costs and work are well worth the effort; however, as estimates indicate that the mine should continue to produce diamonds until 2020 and even beyond.
That is certainly welcome news as the demand for diamonds has largely exceeded the available supply in the last few years. As the market for diamonds in the Middle East, China and India continues to increase, it is expected that the global demand for diamonds will continue to expand as well.
The discovery and mining of diamonds has certainly been welcome news for the Canadian economy, as it means a number of permanent, high-income jobs for Canadian workers. Beginning in 1998, there was a tremendous increase in the number of jobs related to diamond mining. In addition, there has been an increase in the number of jobs related to industries that naturally spin-off from diamond mining, including transportation and construction.
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